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Innovation Conditions in the Case of Solar Power Generation

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Renewable Energies in Germany’s Electricity Market

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Abstract

The development of photovoltaics since the mid-1970s is divided into six phases. The beginning of the period examined was characterized by the two oil price crises of the 1970s and an awareness of limits to growth. After helping the technology’s introduction on the market by means of a broad-scale support program, the municipalities bridged the subsequent critical phase in the development by guaranteeing cost-covering compensation for photovoltaic electricity. The 100,000 Roofs Program was crucial for the photovoltaics breakthrough. The Renewable Energy Sources Act ultimately created long-term security for investment, which led to a boom in the development. Innovative activities in the field of photovoltaics usually rank as high-tech technologies. In addition, photovoltaics is split up into several different technology lines that run in parallel. It is this complexity that sets photovoltaics apart from wind power technology, for example. An additional key factor is the high expectations that commercial and political entities have for this technology, despite photovoltaic electricity generation still being very expensive.

As an alternative to the decentralized use of photovoltaics on buildings, 7–8% of the capacity today is produced in ground-mounted photovoltaic systems – the social acceptance of which is much lower, though. Photovoltaic installations on buildings are more expensive than ground-installed systems, yet they also cause less conflict because they are hardly visible and do not interfere with the appearance of the landscape. Currently there is a very high, unused potential of roof space, the harnessing of which not only requires acceptance but also a more active stance on the part of the actors.

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Notes

  1. 1.

    The PURPA was passed by the United States Congress as a federal law. Its implementation was left up to the discretion of the states and they applied the law in various ways. The PURPA created a market for electricity producers insofar as energy supply companies were obliged to purchase electricity from other “non-utility producers”.

  2. 2.

    German mark here refers to the former German currency, Deutsche Mark.

  3. 3.

    It was founded by Professor Adolf Goetzberger, see http://www.ise.fraunhofer.de/about-us/history/history?set_language=en&cl=en (accessed June 30, 2009).

  4. 4.

    http://www.wacker.com/cms/en/wacker_group/wacker_facts/history/history.jsp (accessed 30 June 30, 2009).

  5. 5.

    After the end of the GDR, the company operated under the name of Freiberger Elektronikwerkstoffe GmbH from 1990 and was taken over by Bayer Solar in 1994. In 2000 SolarWorld acquired a majority stake in Bayer Solar and renamed the company Deutsche Solar. See http://www.deutschesolar.de/Chronik.236.0.html?L=1 (accessed June 30, 2009); see Fig.5.95.9.

  6. 6.

    The program “Rational Energy Use and Use of Inexhaustible Energy Sources” provided investment aid for renewable energy facilities. It was initiated by the state government of North-Rhine Westphalia in 1989 and has been revised on a yearly basis ever since (see Sects. 3.6.3 and 5.2.2.3).

  7. 7.

    Ongoing projects promoting rational energy use and hydrogen and energy storage research could also make use of these funds.

  8. 8.

    Projects in particular areas (such as solar technology for developing countries) were subsidized by 100%.

  9. 9.

    The Glottertal talks are representative here of strategic debates overall. Talks were also held in Bad Zwischenahn and there were a number of other expert discussions involving researchers, sector representatives and project administrators to determine the direction of research and development policy.

  10. 10.

    These figures come from Internet sources (www.ren-breitenfoerderung.nrw.de/evaluation/index.html) that were no longer available by the time study was concluded.

  11. 11.

    In 1989 AEG Telefunken’s photovoltaic unit was taken over by the company DASA, which was founded by Daimler-Benz.

  12. 12.

    Since 1989, it has also functioned as the German section of the International Solar Energy Society (ISES).

  13. 13.

    See www.eurosolar.de (accessed July 6, 2009).

  14. 14.

    The Index of Legal Sources provides information on the sources of all legal documents cited in this report.

  15. 15.

    186 states ratified the Framework Convention on Climate Change.

  16. 16.

    The 1,000 Roofs Program is comparable to the 250-MW Program to promote wind energy, as in both cases the government’s research portfolio supported the initial stages of the technology’s launch onto the market by boosting demand. Both programs were flanked by a monitoring program and in both cases high demand led to funding increases.

  17. 17.

    Investment costs in the old German states were subsidized by 50%; in the new German states, this figure was 60%. Many states topped up these grants by a further 10% (new states) or 20% (old states) (Langniß and Ziesing 2005, 213).

  18. 18.

    This figure varies according to the source: according to Langniß & Ziesing (2005, 214), installations receiving funding had a total capacity of 5.8 MWp; according to Stryi-Hipp, this figure was 5.5 MWp (Stryi-Hipp 2005, 183).

  19. 19.

    Mobil Tyco Solar Energy began development of the EFG (Edge-defined Film-fed Growth) process in 1973: this process involves floating a graphite body with a narrow opening (edge length 10–12 cm) on the melt. Placing a silicon disc on the melt and pulling it upward creates a ribbon. In practice, octagonal tubes up to eight meters long are pulled from the melt and then cut into wafers with a laser.

  20. 20.

    The term New Economy describes an economic system with the following predominant characteristics: globalization, networking using new means of communication, and new methods of corporate financing.

  21. 21.

    A coherent strategy did not come into existence until the Federal Ministry for the Environment assumed responsibility for renewable energies in the fall of 2002 and established an independent department for renewable energies and the environment.

  22. 22.

    The compensation rate set by the StrEG (9 Cent/kWh) only covered ca. one tenth of the imputed costs incurred.

  23. 23.

    In the year 2000 UMTS (Universal Mobile Telecommunications System) spectrum licenses were sold by auction for use via the mobile telecommunications system. The revenue, which was used above all to repay public debt, amounted to 50.8 billion euro.

  24. 24.

    Following city council resolutions, Aachen, Freising and Hammelburg were the first cities to introduce the cost-covering model in 1993. Due to hesitation on the part of the state of North Rhine Westphalia to grant approval, the FCR came into force in the Bavarian municipalities of Freising and Hammelburg first at a rate of 2 DEM/kWh.

  25. 25.

    This figure was 25 according to Langniß and Ziesing (2005, 216). According to Stryi-Hipp over 100 cities passed a resolution approving the introduction of cost-covering compensation and over 35 cities subsequently implemented this strategy (Stryi-Hipp 2005, 184). Mußler (2008, 88 and 111) states that 96 cities across Germany introduced cost-covering compensation.

  26. 26.

    Würth Solar was founded by a solar cell dealer who wanted to become less dependent on established PV companies. The dealer’s market spanned both the Germany and the global market, including developing countries (Jacobsson et al. 2002, 27).

  27. 27.

    Today, Stuttgart University’s Centre for Solar Energy and Hydrogen Research (ZSW) is the largest research institute in Germany for CIS cell technology.

  28. 28.

    Private investment in renewable energies totaled ca. 300 million German mark a year. These funds were primarily invested in solar water heating systems and private PV systems (BMU & UBA 1999, 2).

  29. 29.

    The head of the Federal Economics Ministry’s department of renewable energies, Paul-Georg Gutermuth, was responsible for the market introduction program. His support for photovoltaics was met with frequent opposition from fellow ministers, but he received a great deal of support in this respect from the Federal Environment Ministry.

  30. 30.

    See http://www.sfv.de/sob99228.htm (accessed July 7, 2009).

  31. 31.

    See also (Langniß and Ziesing 2005, 217).

  32. 32.

    Berlin, Thuringia, Mecklenburg-Western Pomerania, North-Rhine Westphalia.

  33. 33.

    This was of particular significance for the southern German states of Bavaria and Baden-Württemberg, since PV technology was more widespread here than in northern Germany. This was mainly because the area received significantly higher levels of solar irradiation, but also presumably due to effect of regional multipliers and a more favorable economic situation.

  34. 34.

    After the EEG was passed, the KfW received 10,000 applications amounting to a total capacity of 70 MWp in March 2000 alone (Stryi-Hipp 2005, 185).

  35. 35.

    This was made possible by the EU’s new community guidelines on environmental aid.

  36. 36.

    See Infodienst Regenerative Energie: www.boxer99.de/archiv_2001_03.htm (accessed July 7, 2009).

  37. 37.

    The decision to transfer responsibility for renewable energies to the Federal Environment Ministry was taken within the scope of the new coalition agreement between the SPD and Alliance 90/The Greens in fall 2002. This move also meant that the remainder of the 100,000 Roofs Program fell within the remit of the Federal Environment Ministry.

  38. 38.

    The solar associations UVS (Solar Industry Trade Association) and BSi (German Solar Sector Association) merged at the beginning of 2006 to form the BSW (German Solar Industry Association).

  39. 39.

    See http://100000daecher.de/forderung-von-solaranlagen/ (accessed July 10, 2009).

  40. 40.

    Seventy percent of the installations that received funding from the 100,000 Roofs Program were constructed in Bavaria and Baden-Württemberg: southern Germany receives far higher levels of solar irradiation.

  41. 41.

    See http://www.1000daecher.de/index.php?id=3 (accessed July 7, 2009).

  42. 42.

    At this point it is important to remember that in the 1990s only a part of the PV module was produced in Germany and the module only accounted for about three quarters of the investment costs. Measured on the basis of installed capacity, the leading countries on the PV market used to be Japan and the US. Thus it would be wrong to consider the cost minimizing potential solely in relation to Germany; it must be viewed in the context of an increase in demand at global level.

  43. 43.

    Cooperatives to operate wind power plants emerged as early as the end of the 1980s in the form of the “citizens’ wind farm” operator model and may have inspired user cooperatives in the area of photovoltaics. In the field of wind energy, the model experienced massive growth from the end of the 1980s (up until around the end of the 1990s) (Byzio et al. 2002, 310 sqq.).

  44. 44.

    To avoid conflict concerning aesthetics, the solar energy sector has started offering special solar tiles or slates in the same color as the rest of the roof cladding to make the solar installation less noticeable. See http://www.pvaccept.de/eng/index.htm (accessed July 13, 2009).

  45. 45.

    See Krampitz (2001, 36); see also Bernreuter (2001, 28 sqq.).

  46. 46.

    See www.pvaccept.de/akzeptanz.htm (accessed July 13, 2009).

  47. 47.

    The full program title was: Residential PV Systems Dissemination Program.

  48. 48.

    ARGE Monitoring PV-Anlagen (2005a, 34–36).

  49. 49.

    The term Außenbereich comes from German zoning law and describes a category of areas which are not within the area designated by a binding land-use plan and which are not part of the built-up area (Innenbereich).

  50. 50.

    The use of regional or land-use planning in decisions concerning site location (Article 7, Section 4 of the Regional Planning Act – ROG) was not considered to be worthwhile, since developments up to that point had not yet resulted in crucial, site-related problems that could only be solved at regional planning level (ARGE Monitoring PV-Anlagen 2005a, 42).

  51. 51.

    See http://www.nabu.de/themen/energie/erneuerbareenergien/solarenergie/04300.html (accessed July 14, 2009)

  52. 52.

    At the end of 2004 the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety assigned the PV Systems Monitoring Working Group with the task of monitoring the impact of the revised EEG on the development of ground-mounted PV arrays (ARGE Monitoring PV-Anlagen 2007).

  53. 53.

    See Stein in ARGE Monitoring PV-Anlagen (2005b, 2).

  54. 54.

    The scheme makes roofs of public buildings available for private investors to install PV systems.

  55. 55.

    Highly integrated companies are companies that integrate many different stages of production (vertical integration) in order to avoid buying in services.

  56. 56.

    A tenfold increase in worldwide silicon production to around 400,000 t is expected between 2005 and 2015, for example. According to estimates, at least 120,000 t will have already been produced by 2010. After deducting the amount required for the semiconductor industry, this would enable the production of PV modules with a total capacity of around 13 GW in 2010 (Siemer 2007, 75).

  57. 57.

    Press report from 24 February 2009: “First Solar Passes $1 Per Watt Industry Milestone”. http://www.finanznachrichten.de/nachrichten-2009-02/13200068-first-solar-passes-dollar-1-per-watt-industry-milestone-004.htm (accessed August 9, 2009).

  58. 58.

    Q-Cells plans to base a large proportion of its cell production on UMG silicon and has entered into a long-term supply agreement up to 2018 with the Chinese company LDK Solar for 20,000 t of UMG silicon. See http://in.reuters.com/finance/stocks/keyDevelopments?symbol=LDK.N&pn=4 (accessed, June 18, 2010).

  59. 59.

    SMA company presentation from May 6, 2008.

  60. 60.

     Cadmium telluride (CdTe), amorphous silicon (a-Si), microcrystalline silicon (μ-Si), copper indium diselenide (CIS), copper indium gallium diselenide (CIGS), copper-indium-gallium-sulfur (CIGSSe).

  61. 61.

    The electricity production costs of the Spanish power plants are in the region of 20–25 cents/kWh. The aim is to cut these costs to between 15 and 18 cents/kWh. Feed-in compensation in Spain is 27 cents/kWh. The next generation of systems in California and Egypt are expected to reduce electricity production costs to as little as 8–9 cents/kWh (Pecka 2008, 22).

  62. 62.

    The Chamber of Agriculture was responsible for processing these grants.

  63. 63.

    According to information provided by the Central Association of the German Electrical Trade (ZVEH), services provided by craft enterprises account for between 25% and 30% of the costs of a solar power system (press release from 3 May 2008).

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Authors and Affiliations

  1. Environmental Assessment and Policy Research Group, Technische Universität Berlin (Berlin Institute of Technology), Sekr. EB 5 Straße des 17. Juni 145, 10623, Berlin, Germany

    Prof. Dr. Elke Bruns & Prof. Dr. Johann Köppel

  2. Centre for Technology and Society, Technische Universität Berlin (Berlin Institute of Technology), Sekr. EB 2-2 Hardenbergstraße 36A, 10623, Berlin, Germany

    Dr. Dörte Ohlhorst

  3. Ingenieurbüro für neue Energien (IfnE), Bertholdstraße 24, 14513, Teltow, Germany

    Dr. Bernd Wenzel

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  1. Prof. Dr. Elke Bruns
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  4. Prof. Dr. Johann Köppel
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Bruns, E., Ohlhorst, D., Wenzel, B., Köppel, J. (2011). Innovation Conditions in the Case of Solar Power Generation. In: Renewable Energies in Germany’s Electricity Market. Springer, Dordrecht. https://doi.org/10.1007/978-90-481-9905-1_5

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